... InformationAliBerilBonds VentureBonds 110,110 110,100Venture 100,110 120 , 120 Normal (p)BerilBonds Venture110,110 110, 120 100,110 120 , 120 Crazy (1− p) 12 IntroductionIf Ali was sure that Beril was crazy, then ... however, has the following expected return for Alip× 100+ (1− p) × 120 = 120 − 20 pwhich is bigger than $110 if p < 1 /2. In other words, we would expect the solution to be investmentin the ... 610IntroductionFigure 1.5: Entry GamePCOut InA F0,4 2, 2 −1,0Table 1.1: Voters’ Preferencesvoter 1 voter 2 voter 3A B SS A AB S Bby Coke (C). After observing Pepsi’s choice...